Thursday, September 28, 2006 Power firm denies done deal on Asin hydro management By Jane Cadalig
THE management of Hydro Electric Development Corporation (Hedcor) said Wednesday there is no truth to reports that a negotiated contract with the City Government was signed as regards the management and operations of the Asin power plants in Tuba, Benguet.
Hedcor president Rene Ronquillo explained that the firm is merely working out on a proposal for the rehabilitation of the city-owned power plants, which he said, are "long due for major rehabilitation".
"We are willing to implement the rehabilitation of the Asin plants but this must be covered by an interim agreement with the city. Without an agreement, we prefer turnover (of the plants to be managed by the city)," Ronquillo said.
He said the repair of the plants, located in Barangays Tadiangan and Nangalisan, both in Tuba, would incur around P40 million and that the firm could not just implement rehabilitation works without an assurance that the investment would be recovered.
"The hydros are unsafe to operate. If nothing is done, the city would lose much," said Ronquillo, adding that the conveyance pipe of Power Plant #2, which was affected by the recent typhoons, needs immediate repair.
The power firm is temporarily operating the Asin hydros after the city's contract with the Baguio Water District (BWD) lapsed on August 31. The city is still finalizing the terms of reference for the bidding on the management of the power plants.
Ronquillo said the firm's proposal for interim agreement is only good until the end of this year, saying the long term management of the plants should undergo a public bidding.
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